By Seedy Jobe
The International Monetary Fund has approved a disbursement of about $38.15 million to The Gambia, providing a fresh infusion of financing as the country posts solid economic growth while pursuing fiscal reforms and climate resilience measures.
The approval follows the completion of the fourth review under the IMF’s Extended Credit Facility and the first review under its Resilience and Sustainability Facility. Of the total amount, roughly $17 million comes from the credit facility, which was approved in January 2024 and brings cumulative disbursements under that program to about $68 million. The remaining $21.24 million is from the sustainability facility, approved in June 2025, and is intended to help the country strengthen its ability to withstand climate-related shocks.
Economic performance has been robust. Real gross domestic product is projected to grow by 6 percent in 2025, driven largely by agriculture, construction, and tourism. Inflation has continued to ease, falling to about 7 percent by October, reflecting tighter monetary policy and a moderation in global price pressures.
Bo Li, the IMF’s deputy managing director, said the outlook underscored the importance of strong tax collection, restrained public spending, and continued fiscal consolidation to safeguard debt sustainability, even as the government expands social and infrastructure investment. He praised what he described as “robust growth and declining inflation,” citing satisfactory implementation of the credit facility and progress on reforms supported by the sustainability program.
Among the government’s key policy priorities are efforts to boost domestic revenue through administrative measures and the planned introduction of a carbon-based fuel excise duty in 2026. Mr. Li said the authorities remained committed to meeting their 2025 fiscal targets despite delays in expected financing from Africa50, an infrastructure investment platform.
The sustainability facility is expected to support reforms aimed at improving climate policy frameworks and mobilizing green finance, an urgent priority for The Gambia, which is highly vulnerable to climate shocks and natural disasters.
While the IMF described the economic outlook as broadly positive, it cautioned that downside risks remain, particularly from external shocks that could weigh on growth and public finances.